The U.S. government has announced it may slap tariffs of up to 100% on some French imports in retaliation for a French digital tax. In a report on Monday local time, U.S. Trade Representative Robert Lighthizer recommended punitive tariffs on 63 product lines with a import value of around U.S. $2.4 billion on French goods.
Lighthizer said that the tariffs are justified because of France's digital-services tax imposed on U.S. technology companies including Google, Facebook, Apple and Amazon.
The Trump administration has been looking into the French digital tax for months and has concluded that it is “inconsistent with prevailing principles of international tax policy, and is unusually burdensome for affected U.S. companies".
In July, France passed the the digital bill that levies a 3 percent annual tax on big tech companies that provide services in the country.
President Trump is scheduled to meet with French President Emmanuel Macron in London on Tuesday on the sidelines of a NATO leaders meeting.
Meanwhile, President Trump also said on Monday that the U.S. will restore tariffs on steel from Brazil and Argentina.
"Brazil has really discounted, if you take a look at what's happened with their currency, they've devalued their currency very substantially, by 10 percent."
He justified the move by saying that devalued currencies harmed U.S. farmers by making it harder for them to export their goods.
The Dow Jones fell 268 points or nearly 1 percent on Monday following concerns over global trade risks and news of fresh U.S. tariffs against Argentina and Brazil.
Eum Ji-young Arirang News.